The strength of the dollar and the fear that the economic recession may damage the prospect of energy demand put pressure on oil prices.
Analysts pointed out that the decline in crude oil futures prices is inevitable, because the fear of sanctions has given way to the reality that Russia sells oil to new buyers in Asia, the crude oil market is re-priced, and the negative impact of oil price enterprises on demand and economy is becoming more and more obvious.
Analysts at Citigroup said that if there is an economic recession that seriously affects demand, the price of crude oil may fall to $65 per barrel by the end of this year and $45 per barrel by the end of 2023. This prospect assumes that OPEC+oil producers will not intervene and oil investment will decrease. Citigroup analysts warned: "In all recessions, oil prices will fall near marginal costs."
At the same time, the global demand for electricity has risen sharply, the temperature has risen in summer, and the supply of the most polluted fossil fuels is limited. The price of coal in the United States has risen to the highest level in history.